Certified Government Auditing Professional (CGAP) Practice Exam

In planning a performance program audit, what observation should concern the auditor regarding program officials' goals?

1. Program officials have a goal directly in line with the law.

2. Legislators may not have a valid basis for the law.

3. Program officials may not have a valid baseline for the number of identifications and studies.

4. The law emphasizes an outcome while the focus is on output.

The correct answer is: The law emphasizes an outcome while the focus is on output.

When planning a performance program audit, it is essential for the auditor to recognize that goals set by program officials should align with desired outcomes rather than merely focusing on outputs. This understanding is crucial because the law likely emphasizes achieving specific, measurable results that demonstrate the effectiveness of a program, such as improving service delivery or achieving certain standards. If program officials are instead concentrating on outputs, such as the volume of services provided or activities completed, they may miss the larger objective of achieving substantive results for the beneficiaries of the program. Focusing on outputs rather than outcomes can lead to a scenario where the program may appear successful based on the quantity of services delivered, rather than the actual impact of those services. This could potentially result in unnecessary resource allocation that does not lead to tangible benefits or improvements, ultimately diminishing the effectiveness of the program. Understanding this distinction allows auditors to assess whether program officials are steering their efforts toward achieving the ultimate goals set forth by legislation, rather than getting sidetracked by measuring and reporting quantifiable activities that do not necessarily correlate with successful outcomes.